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Holiday Air, a Sri Lankan airline, plans to invest US$ 12 mn to operate international flights from the island, following the liberalisation of the sector, the government's Board of Investment said Friday. "We have (the company) already negotiated with an American company to lease out five 160-seater Boeing 737 aircraft for our operations in Sri Lanka," the board on its Web site quotes Holiday Air Chief Executive Arjun Ruzaik as saying.
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He said the airline will also operate domestic flights.
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In 2004, the government introduced an "open skies" policy that allows private airlines to operate international flights from the island nation.
This had been prohibited under a deal signed in 1998 with Emirates Airlines, under which the Dubai-based airline agreed to buy 40% of Sri Lanka's national carrier SriLankan Airlines, then known as Air Lanka, and assume total management control for 10 years.
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The government owns the remaining 60%.
Ruzaik said Holiday Air has applied for a licens